2 tech stocks you could keep forever

These two tech stocks could be perfect long-term holdings in your portfolio

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Warrant Buffett has famously stated that his favourite holding period was "forever."

But apart from investing in IBM, Buffett has avoided most technology stocks for most of his career, although Berkshire Hathaway recently bought into Apple. That was primarily because one of Buffett's rules is that he only invests in companies he can understand.

Given the rate of technological change – particularly in the tech sector – investors might think that it would be tough to buy and hold any tech stock "forever."

These two might be good choices…

TPG Telecom Ltd (ASX: TPM)

The broadband provider has seen its share price smashed down more than 30% in the past month, mostly because of a warning that the company's margins will be lower once the National Broadband Network (NBN) has been rolled out, compared to the margins it currently earns on its ADSL services.

But major shareholder, chairman and CEO David Teoh is no dummy and you can bet your bottom dollar that he will be doing everything in his power to make sure TPG Telecom is profitable and growing for many years to come. TPG is also likely to remain a key telecommunications provider in Australia well into the future. The fall in the share price might well be a perfect opportunity to get set or top up your holding.

Technology One Limited (ASX: TNE)

The provider of integrated enterprise solutions, Technology One competes with the likes of SAP, offering software to manage business processes such as payroll and supply chains. Revenues and earnings are growing nicely and the company has already flagged that it could announce a special dividend when it reports its full year results in late November 2016.

The company has an outstanding track record that suggests the future should also be bright. Technology One has been profitable every year since 1992 (that 21 years and counting) and paid dividends every year since 1996. The company's share price may not look cheap and the dividend yield of just over 1% is fairly unattractive, but that reflects the company's quality more than anything.

Motley Fool writer/analyst Mike King owns shares in TPG Telecom. You can follow Mike on Twitter @TMFKinga The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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